789 Chrysler Dealerships Closing

Chrysler filed a motion in the US Bankruptcy court in New York where it said it intends to close down 789 dealerships by June 9 because most of the dealers were reporting low sales and the major bulk of sales were coming from 50% of the other dealers. According to Chrysler Vice President Jim Press, the final listing of dealerships to be closed has been drawn up and stands as final without the provision for an appeal. This move could mean a huge loss in jobs and unpaid taxes across the country.

Chrysler had announced that it would have to close down 25% of its total 3181 dealerships in an attempt to survive by downsizing and partnering with the Italian Fiat. The cuts could mean a dozen dealerships closed in Massachusetts, 20 in Indiana and 44 in Illinois, and even higher cuts in other states.

For the dealerships that have not received the letter of elimination it has been a time of mixed emotions. Cary Bosak of the Bosak Auto Group in Merrillville said, “Our employees and families obviously are happy and relieved. We’ll continue on as a Chrysler dealer; at the same time, the dealers all around that are getting cut are friends of ours that we’ve known for a long time. You feel happy for our employees but feel empathy for the (other) dealers.”

However, in spite of the no-appeal clause of Chrysler’s final list of eliminated dealerships, a number of dealers have said they will fight the proposal because all the eliminated dealerships taken together account for 14% of Chrysler’s sales in the US.